Funding for research into carbon capture and storage has also been targeted and will lose $460 million over three years, and a $100 million program to roll out solar energy systems in 25 towns and 100 schools has been slashed to $2.1 million over three years.

Other clean technology programs face a $44.7 million cut.

Last year the Government was promising hefty rebates to help install one million rooftop solar systems at a cost of $500 million. That commitment has also been dumped.

The $2.5 billion Australian Renewable Energy Agency (ARENA) will also be absorbed by the industry department - saving the budget $1.3 billion.

"If we actually throw away options, a fear for me is that the energy mix that we currently have just gets ossified," said ARENA chairman Greg Bourne.

"Infrastructure is hospitals, infrastructure is schools, but infrastructure is also the energy system that you have within a country and without the energy system, your overall system begins to grind to a halt."

Mr Bourne says the current reliance on traditional energy sources is "not fit for purpose in this century".

The last significant piece of green energy legislation, the Renewable Energy Target (RET), is currently under review.

After investing billions in the sector, Mr George warns any changes would be a breach of faith.

"If the legislation is now to be changed we would expect to be fully compensated," he said.

"If [they] took the RET away tomorrow ... we would lose 40 per cent of our revenue and our Australian business would fail ... along with nearly all wind farms and wind farm businesses in Australia."

Mr George says Infigen has made investments over the past 10 years on the basis of legislation that had "bi-partisan support".

"If the legislation is now to be changed retrospectively and that has a negative effect on our business, we would expect to be fully compensated," he said.

"This is the way Australia does it. Australia does not wreck existing legislation without compensation."

The Environment Minister declined an interview but maintains that tough decisions needed to be made in the current economic climate.